Definition of Restoration:a return of something to a former, original, normal, or unimpaired condition, a reconstruction or reproduction of an ancient building, extinct animal, or the like, showing it in its original state.
That is part of the definition that applies here, I always thought a restoration meant making it look like it did when it was brand new. I also understand a "day 2 restoration" when the car was taken home and modified with wheels, headers, a bigger carb etc. I think people that advertise there stuff as restored should get the definition of the word before they use it.
Modified is not restored, and never will be, just like the kid at work that "restored" his 87 Crapmaro w/ a 305 that has, get this, a 750 CFM Holley, and a 292 dur .512 lift cam. overkill comes to mind.